Berlin-based municipal housing company Howoge has secured €200 mln in financing from Deutsche Kreditbank (DKB) and Investitionsbank Berlin (IBB).
The loan will be used to partially fund the acquisition of a Berlin residential property portfolio.
This loan, split equally between the two banks and carrying a DKB Social Loan Label, supports HOWOGE's affordable housing initiatives by financing properties with below-market rents.
The overall €700 mln purchase price is financed through a mix of loans, a social bond, and existing capital.
Katharina Greis, commercial director of Howoge, said: ‘As a municipal company, it is our mission to create and maintain affordable housing. Accordingly, in April of this year, Howoge purchased a package of around 4,500 apartments and extensive building land reserves. These are being financed, among other things, by the loan agreement signed today by our major strategic partner banks DKB and IBB.’
Tilo Hacke, member of the DKB board of directors, commented: ‘The demand for large-volume financing has increased significantly in recent years and will continue to rise. The energy transition, infrastructure projects and the additional demand for housing in large cities are triggering a high capital requirement. Projects like this show how beneficial the partnership, especially with development banks, to implement such financing is for everyone involved.’
Hinrich Holm, chairman of the Board of Directors of IBB, added: ‘Securing affordable housing and thus sustainably promoting the quality of life of Berliners has been our credo for 100 years. By working with Howoge and DKB, we are making an important contribution to social urban development and enabling housing that remains accessible even for households with limited incomes.’
Howoge is one of Berlin's six largest municipal housing companies, owning approximately 76,700 apartments. They aim to expand their portfolio to 100,000 units through new construction.
